Public Broadcasting Service

“The executive committee of the pbs board of directors has the authority to act on behalf of the board between meetings of the board as needed, and shall timely report such actions to the full board. During the reporting period, the executive committee consisted of the board chair, the pbs president, the chairs of four standing committees of the board, and three at-large directors selected by the board chair. All appointments to the executive committee shall be approved by a majority of the board. Form 990, part vi, section a, line 4: substantive changes to the pbs by-laws in fiscal 2018 include the following: article 3.5(c) of the pbs by-laws was amended to clarify that member resignation, suspension or termination for cause shall not relieve a member of any outstanding obligations incurred by the member, including payment of all outstanding dues and any other amounts owed to the corporation. Article 4.1 identifies the annual meeting of the members as the annual corporate meeting of the members, denoting its distinction from the pbs annual meeting. Article 5.3(a) has been amended to set a date of 10 days prior to the start of an election for members to petition to add names to the selected slate of professional directors proposed by the nominating and corporate governance committee. The article also increased, from at least 21 days to at least 28 days, the amount of notice of the slate that the membership must be given in advance of the election. Article 6.7 adds the investment committee as a full, standing committee of the pbs board. Article 7.1(a) has been amended to clarify that pbs officers are elected annually by the pbs board, and that the position of secretary requires a joint recommendation from the board chair and the president. Article 7.5 has been added to the by-laws to address the cessation of service, resignation or removal of a corporate officer. Article 8.1 has been modified to specify that the board may delegate to the pbs president, or any other person, the authority to enter into a contractual agreement on behalf of the corporation. Article 9 has been amended to indicate that the corporation may, rather than shall, have a corporate seal. Article 13 has been amended to remove the implication that no other business can be conducted at a meeting at which by-laws amendments are on the agenda.”

“Pbs' member stations are fcc non-commercial, educational licensees that receive and distribute pbs programming in local markets after having applied for and been granted membership status in pbs by the pbs board.”

“Members of the organization elect 14 of the 27 members of the governing body.”

“Any amendment of the by-laws altering the classes or number of members or directors, or the terms of directors, shall also require the approval of a majority of the members voting.”

“The process for reviewing the pbs form 990 prior to filing includes a review by the ceo, coo, cfo/treasurer, chief legal officer and the chair of the audit committee. In addition, copies of the form are provided to the full board for review prior to filing.”

“In accordance with the pbs conflict of interest policy, all pbs staff at the director level and above are required to complete annually a conflict of interest form. These forms are distributed, collected, retained and reviewed by the office of the pbs chief legal officer. With respect to the pbs board, officers and directors complete annually a conflict of interest form and these forms are reviewed by the nominating and corporate governance committee and the corporate secretary. In accordance with the policy, potential conflicts arising during the year are reviewed by the chairman of the board, the chair of the nominating and corporate governance committee, and/or the corporate secretary.”

“The executive committee of the board is responsible for executive compensation. The executive committee retains an independent executive compensation expert who supplies comparability data on the ceo and all key employees and submits a written opinion on compliance with intermediate sanctions. The executive committee makes a recommendation on ceo compensation to the full board, which approves any such compensation. The ceo is recused from any discussion and vote. The executive committee approves compensation of the chief operating officer, the chief financial officer, the chief legal oifficer, the chief technology officer and the chief digital and marketing officer.”

“Pbs' governing documents and conflict of interest policy are made available upon request. Financial statements are available on pbs' website.”

“(continued from page 1) with its member stations serves the american public with programming and services of the highest quality, using media to educate, inspire, entertain and express a diversity of perspectives. Form 990, part i, line 5 and part v, line 2a: the total number of pbs employees who received a 2017 form w-2 from the filing organization was 591.”

“Educational grants represents activity related primarily to grants received from the corporation for public broadcasting. Expenses $12,911,423 including grants of $5,488,790 revenue $0 member services represents other services provided to pbs' member stations, including digital products and services, development, and copyright administration. Expenses $7,813,753 including grants of $1,269,700 revenue $23,710,490 royalties and other - represents amounts distributed to public broadcasting stations and producers from cable and license fee revenue received from cable and satellite providers. Expenses $4,049,250 including grants of $0 revenue $4,560,551 ventures - represents activities associated with the sale of dvds, digital content, and program-related products that are sold to educational institutions, libraries, businesses, government agencies and individuals; the licensing, development, and distribution of interactive products, such as online video games; the licensing of video content to commercial online and mobile service providers; and online sponsorship activities. Expenses $3,567,230 including grants of $0 revenue $35,650,491”

“Audit of financial statements: pbs undergoes an annual audit as a consolidated entity and therefore is not audited on an individual basis. Audits are conducted by an independent accounting firm.”

“FUNDRAISING COSTS REFLECTED IN PART IX, COLUMN D, RELATE TO TIME SPENT BY STAFF IN WRITING PROPOSALS AND SOLICITING SUPPORT FROM GOVERNMENT AGENCIES. THE ASSOCIATED REVENUE AS A RESULT OF THESE EFFORTS IS REFLECTED IN PART VIII, LINE 1e, GOVERNMENT GRANTS AND / OR CONTRIBUTIONS. PBS DOES NOT INCUR FUNDRAISING EXPENSES RELATED TO GRANTS AND / OR CONTRIBUTIONS LISTED IN PART VIII, LINE 1f. THE AMOUNTS IN THIS LINE ITEM ARE MADE UP OF THE FOLLOWING: CORPORATION FOR PUBLIC BROADCASTING (CPB): THE PUBLIC BROADCASTING ACT REQUIRES THAT A SET PERCENTAGE OF THE CPB FEDERAL APPROPRIATION BE USED FOR NATIONAL PUBLIC TELEVISION PROGRAMMING, PURSUANT TO A PLAN DEVELOPED BY CPB IN CONSULTATION WITH PBS AND SIMILAR ORGANIZATIONS, WHICH IS REGULARLY REVIEWED AND ADJUSTED. PBS DOES NOT SOLICIT THESE FUNDS FROM CPB. DONATED BROADCAST RIGHTS: THESE ARE CONTRIBUTIONS FOR CONTENT DEVELOPMENT MADE BY ORGANIZATIONS DIRECTLY TO PRODUCERS. THESE FUNDS ARE NOT SOLICITED BY PBS. OTHER CONTRIBUTIONS: PBS FOUNDATION SOLICITS FUNDS THROUGHOUT THE COUNTRY IN SUPPORT OF PUBLIC BROADCASTING. THE MAJORITY OF THESE FUNDS ARE THEN GRANTED TO PBS TO ENSURE PBS' CONTINUED EXCELLENCE AND TO PROMOTE AND ENHANCE OUTSTANDING PUBLIC BROADCASTING PROGRAMS AND SERVICES.”

“OTHER CHANGES IN NET ASSETS: RETURN OF GRANT FUNDS (PRIOR YEARS) 2,152 DE-OBLIGATION OF GRANT REVENUE (PRIOR YEARS) -38,180 MISCELLANEOUS ADJUSTMENTS 21,985 ----------- TOTAL FORM 990, PART XI, Line 9 -$14,043 ===========”

“There have been no changes during the year in the process for oversight of the audit of the organization's consolidated financial statements.”